LIVONIA, Mich., Feb. 12, 2019 /PRNewswire/ -- Tower
International, Inc. (NYSE: TOWR), a leading manufacturer of
engineered automotive structural metal components and assemblies,
today announced fourth quarter and full year 2018 results and
provided its business outlook through 2020.
During the fourth quarter 2018, Tower reached a definitive
agreement to divest its European operations. As such, these
operations are classified as discontinued operations.
Additionally, the Company has decided to retain its operations in
Brazil; accordingly, the results
for the Company's Brazilian operations are now included in
continuing operations. The divestiture of Tower Europe is
expected to close during the first quarter 2019 and result in net
cash proceeds of approximately $250
million after payment of transaction costs and fees and the
unwinding of the Euro denominated swaps related to the Term
Loan.
- Revenue for the full year 2018 was $1.572 billion compared with $1.382 billion in 2017, representing a 14 percent
increase. Revenue for 2018 excluded $650
million of European revenue and included $53 million of Brazilian revenue.
- Full year net income was $48.9
million or $2.33 per share,
compared with $47.6 million or
$2.29 per share last year. As
detailed below, this year's results included special items which
adversely impacted net income by $24.5
million. Excluding these items and comparable items in 2017,
adjusted earnings per share of $3.50
increased 6 percent from $3.30 from a
year ago. Adjusted EPS for 2018 excluded 78
cents associated with Europe and included 8
cents associated with Brazil.
- Adjusted EBITDA for full year 2018 was $178 million up 13 percent from $157 million a year ago. Adjusted EBITDA for 2018
excluded $58 million associated with
Europe and included $5 million associated with Brazil.
- For full year 2018, net cash provided by continuing operating
activities were $98 million. Cash
disbursed for purchases of equipment totaled $83 million resulting in Free Cash Flow of
$15 million.
- If European operations were included in continuing operations
and Brazilian operations were not included in continuing
operations, Tower's full year 2018 revenue of $2.169 billion, Adjusted EBITDA of $230 million, Adjusted EPS of $4.20 and Free Cash Flow of $41 million would have been in-line with full
year outlook.
- Tower's net new business backlog for 2019 through 2020 is now
$250 million. This represents an
increase of more than 10 percent from the $225 million provided last year.
"Despite a difficult macro-environment, Tower delivered 2018
results in-line with our Outlook. We continue to balance our
capital allocation, by investing in profitable growth, reducing
debt and returning capital to shareholders. The pending sale
of Tower Europe further strengthens our balance sheet and positions
Tower to capitalize on the healthy and growing light truck and SUV
market in North America," said CEO
Jim Gouin. "With significant
program changeovers and the launch of approximately $700 million in annual run rate revenue, 2019
will be a transition year. By 2020 these major launches will
be completed and we expect significant margin improvement and
substantial Free Cash Flow."
- During 2019 Tower expects to launch programs which will
represent nearly $700 million of
on-going revenue. These product launches combined with
customer downtime associated with platform changeover will
adversely impact results, particularly in the first half of the
year.
- Full year 2019 outlook includes:
-
- Revenue of $1.65 billion,
reflecting primarily net new business of $175 million, offset partially by adverse program
mix of $90 million;
- Adjusted EBITDA of $175
million;
- Diluted Adjusted EPS of $2.50 per
share which is adversely impacted by the adoption of ASC 842 and a
higher tax rate; and
- Free Cash Flow of $15 million,
with strong free cash flow in the second half of the year more than
offsetting the expected cash outflow in the first half of the
year.
- With the completion of significant launch activity in 2019,
financial results are expected to improve substantially. Full
year 2020 outlook includes:
-
- Revenue of $1.69 to $1.74 billion;
- Adjusted EBITDA of $200 to
$210 million;
- Adjusted EBITDA Margin of approximately 12 percent; and
- Free Cash Flow of more than $60
million.
Tower to Host Conference Call Today at 11 a.m. EST
Tower will discuss its 2018 results and other related matters in
a conference call at 11 a.m. EST
today. Participants may listen to the audio portion of the
conference call either through a live audio webcast on the
Company's website or by telephone. The slide presentation and
webcast can be accessed via the investor relations portion of
Tower's website www.towerinternational.com. To dial into
the conference call, domestic callers should dial (866)
393-4576, international callers should dial (706) 679-1462.
An audio recording of the call will be available approximately two
hours after the completion of the call. To access this
recording, please dial (855) 859-2056 (domestic) or (404) 537-3406
(international) and reference Conference I.D. # 7888969.
A webcast replay will also be available and may be accessed via
Tower's website.
Non-GAAP Financial Measures
This press release includes the following non-GAAP financial
measures: "adjusted EBITDA", "adjusted EBITDA margin", "adjusted
earnings per share", and "free cash flow". We define adjusted
EBITDA as net income/(loss) before interest, taxes, depreciation,
amortization, restructuring items and other adjustments described
in the reconciliations provided in this press release. We
define adjusted EBITDA margin as adjusted EBITDA as a percentage of
revenues. Adjusted earnings per share exclude certain income and
expense items described in the reconciliation provided in this
press release. Free cash flow is defined as cash provided by
continuing operating activities less cash disbursed for purchases
of property, plant and equipment. We use adjusted EBITDA,
adjusted EBITDA margin, adjusted earnings per share, and free cash
flow as supplements to information provided in accordance with
generally accepted accounting principles ("GAAP") in evaluating our
business and they are included in this press release because they
are principal factors upon which our management assesses
performance and in certain instances in measuring performance for
compensation purposes. Reconciliations of these non-GAAP
financial measures to the most directly comparable financial
measures calculated in accordance with GAAP are set forth
below. The non-GAAP measures presented above are not measures
of performance under GAAP. These measures should not be
considered as alternatives for the most directly comparable
financial measures calculated in accordance with GAAP. Other
companies in our industry may define these non-GAAP measures
differently than we do and, as a result, these non-GAAP measures
may not be comparable to similarly titled measures used by other
companies in our industry; and certain of our non-GAAP financial
measures exclude financial information that some may consider
important in evaluating our performance. Given the inherent
uncertainty regarding mark to market adjustments of financial
instruments, potential gain or loss on our Discontinued Operations,
potential restructuring expenses, and expenses related to our
long-term incentive compensation programs in any future period, a
reconciliation of forward-looking financial measures to the most
directly comparable financial measures calculated and presented in
accordance with GAAP is not feasible. Consequently, any
attempt to disclose such reconciliations would imply a degree of
precision that could be confusing or misleading to investors. The
magnitude of these items, however, may be significant.
Forward-Looking Statements and Risk Factors
This press release contains statements which constitute
forward-looking statements, within the meaning of the Private
Securities Litigation Reform Act of 1995, including but not limited
to statements regarding the completion of the divestiture of the
Company's European operations, prospective program launches,
business growth, and the Company's projected earnings, free cash
flow, revenues, Adjusted EBITDA and Adjusted EBITDA margin. The
forward-looking statements can be identified by words such as
"anticipate," "believe," "plan," "estimate," "expect," "intend,"
"project," "target," and other similar expressions.
Forward-looking statements are made as of the date of this press
release and are based upon management's current expectations and
beliefs concerning future developments and their potential effects
on us. Such forward-looking statements are not guarantees of
future performance. The following important factors, as well
as risk factors described in our reports filed with the SEC, could
cause our actual results to differ materially from estimates or
expectations reflected in such forward-looking statements:
- global automobile production volumes;
- the financial condition of our customers and suppliers;
- our ability to make scheduled payments of principal or interest
on our indebtedness and comply with the covenants and restrictions
contained in the instruments governing our indebtedness;
- our ability to refinance our indebtedness;
- risks associated with our non-U.S. operations, including
foreign exchange risks and economic uncertainty in some
regions;
- any increase in the expense and funding requirements of our
pension and other postretirement benefits;
- our customers' ability to obtain equity and debt financing for
their businesses;
- our dependence on our largest customers;
- pricing pressure from our customers;
- work stoppages or other labor issues affecting us or our
customers or suppliers;
- our ability to integrate acquired businesses;
- our ability to take advantage of emerging secular trends;
- risks associated with business divestitures; and
- costs or liabilities relating to environmental and safety
regulations.
We do not assume any obligation to update or revise the
forward-looking statements contained in this press release.
Contact:
Derek
Fiebig
Executive Director, Investor & External Relations
(248) 675-6457
fiebig.derek@towerinternational.com
TOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Amounts in
thousands, except share and per share amounts -
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
377,270
|
|
$
354,806
|
|
$
1,571,853
|
|
$
1,382,474
|
Cost of
sales
|
|
334,544
|
|
303,667
|
|
1,377,955
|
|
1,193,311
|
Gross
profit
|
|
42,726
|
|
51,139
|
|
193,898
|
|
189,163
|
Selling, general, and
administrative expenses
|
|
20,860
|
|
22,514
|
|
89,527
|
|
87,756
|
Amortization
expense
|
|
105
|
|
110
|
|
435
|
|
443
|
Restructuring and
asset impairment charges, net
|
|
2,213
|
|
1,540
|
|
3,380
|
|
9,098
|
Operating
income
|
|
19,548
|
|
26,975
|
|
100,556
|
|
91,866
|
Interest
expense
|
|
4,428
|
|
5,250
|
|
19,856
|
|
10,882
|
Interest
income
|
|
286
|
|
287
|
|
1,058
|
|
1,138
|
Net periodic benefit
income / (expense)
|
|
(4,078)
|
|
574
|
|
(2,403)
|
|
2,245
|
Other
expense
|
|
-
|
|
-
|
|
977
|
|
575
|
Income before
provision for income taxes and income / (loss) from discontinued
operations
|
|
11,328
|
|
22,586
|
|
78,378
|
|
83,792
|
Provision / (benefit)
for income taxes
|
|
(10,068)
|
|
30,728
|
|
1,259
|
|
44,089
|
Income / (loss) from
continuing operations
|
|
21,396
|
|
(8,142)
|
|
77,119
|
|
39,703
|
Income / (loss) from
discontinued operations, net of tax
|
|
(34,752)
|
|
4,275
|
|
(28,219)
|
|
8,032
|
Net income /
(loss)
|
|
(13,356)
|
|
(3,867)
|
|
48,900
|
|
47,735
|
Less: Net income
attributable to the noncontrolling interests
|
-
|
|
-
|
|
-
|
|
110
|
Net income / (loss)
attributable to Tower International, Inc.
|
$
(13,356)
|
|
$
(3,867)
|
|
$
48,900
|
|
$
47,625
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
|
20,606,735
|
|
20,536,983
|
|
20,591,674
|
|
20,498,668
|
Weighted average
diluted shares outstanding
|
|
20,606,735
|
|
20,536,983
|
|
20,996,068
|
|
20,828,888
|
|
|
|
|
|
|
|
|
|
Basic income / (loss)
per share attributable to Tower International, Inc.:
|
|
|
|
|
|
|
Income / (loss) per
share from continuing operations
|
|
$
1.04
|
|
$
(0.40)
|
|
$
3.75
|
|
$
1.93
|
Income / (loss) per
share from discontinued operations
|
|
(1.69)
|
|
0.21
|
|
(1.38)
|
|
0.39
|
Income / (loss) per
share
|
|
(0.65)
|
|
(0.19)
|
|
2.37
|
|
2.32
|
|
|
|
|
|
|
|
|
|
Diluted income /
(loss) per share attributable to Tower International,
Inc.:
|
|
|
|
|
|
|
Income / (loss) per
share from continuing operations
|
|
$
1.04
|
|
$
(0.40)
|
|
$
3.67
|
|
$
1.90
|
Income / (loss) per
share from discontinued operations
|
|
(1.69)
|
|
0.21
|
|
(1.34)
|
|
0.39
|
Income / (loss) per
share
|
|
(0.65)
|
|
(0.19)
|
|
2.33
|
|
2.29
|
TOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(Amounts in
thousands - unaudited)
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2018
|
|
2017
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
|
$
68,066
|
|
$
96,313
|
Accounts receivable,
net of allowance of $823 and $556
|
|
113,128
|
|
123,958
|
Inventories
|
|
69,434
|
|
57,495
|
Assets held for
sale
|
|
431,613
|
|
517,783
|
Prepaid tooling,
notes receivable, and other
|
|
27,552
|
|
43,986
|
Total current
assets
|
|
709,793
|
|
839,535
|
|
|
|
|
|
Property, plant, and
equipment, net
|
|
347,803
|
|
323,199
|
Goodwill
|
|
7,453
|
|
7,424
|
Deferred tax
asset
|
|
82,832
|
|
82,077
|
Other assets,
net
|
|
22,511
|
|
8,638
|
Total
assets
|
|
$
1,170,392
|
|
$
1,260,873
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Short-term
debt
|
|
$
4,148
|
|
$
4,744
|
Accounts
payable
|
|
188,760
|
|
213,333
|
Accrued
liabilities
|
|
84,306
|
|
74,040
|
Liabilities held for
sale
|
|
167,882
|
|
210,905
|
Total current
liabilities
|
|
445,096
|
|
503,022
|
|
|
|
|
|
Long-term debt, net
of current maturities
|
|
294,457
|
|
346,011
|
Pension
liability
|
|
45,762
|
|
47,813
|
Other non-current
liabilities
|
|
84,163
|
|
94,155
|
Total non-current
liabilities
|
|
424,382
|
|
487,979
|
Total liabilities
|
|
869,478
|
|
991,001
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
|
224
|
|
223
|
Additional paid in
capital
|
|
347,816
|
|
344,153
|
Treasury
stock
|
|
(36,882)
|
|
(36,408)
|
Retained
earnings
|
|
64,676
|
|
29,712
|
Accumulated other
comprehensive loss
|
|
(74,920)
|
|
(67,808)
|
Total stockholders'
equity
|
|
300,914
|
|
269,872
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
1,170,392
|
|
$
1,260,873
|
TOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Amounts in
thousands - unaudited)
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
|
2018
|
|
2017
|
|
|
|
|
|
OPERATING
ACTIVITIES:
|
|
|
|
|
Net income
|
|
$
48,900
|
|
$
47,735
|
Less: Income / (loss)
from discontinued operations, net of tax
|
|
(28,219)
|
|
8,032
|
Income from
continuing operations
|
|
77,119
|
|
39,703
|
|
|
|
|
|
Adjustments required
to reconcile income from continuing operations to net cash provided
by continuing operating activities:
|
|
|
|
|
Deferred income tax
provision / (benefit)
|
|
(3,334)
|
|
41,702
|
Depreciation and
amortization
|
|
54,815
|
|
50,471
|
Non-cash share-based
compensation
|
|
3,413
|
|
2,219
|
Pension income, net
of contributions
|
|
(4,270)
|
|
(11,512)
|
Change in working
capital and other operating items
|
|
(29,496)
|
|
4,408
|
Net cash provided by
continuing operating activities
|
|
$
98,247
|
|
$
126,991
|
|
|
|
|
|
INVESTING
ACTIVITIES:
|
|
|
|
|
Cash disbursed for
purchases of property, plant, and equipment, net
|
|
$
(83,141)
|
|
$
(67,240)
|
Proceeds from
disposition of joint ventures, net
|
|
4,314
|
|
15,944
|
Net proceeds from
sale of property, plant, and equipment
|
|
14,883
|
|
-
|
Net cash used in
continuing investing activities
|
|
$
(63,944)
|
|
$
(51,296)
|
|
|
|
|
|
FINANCING
ACTIVITIES:
|
|
|
|
|
Proceeds from
borrowings
|
|
$
104,303
|
|
$
485,368
|
Repayments of
borrowings
|
|
(104,508)
|
|
(498,553)
|
Voluntary repayments
on Term Loan Credit Facility
|
|
(50,000)
|
|
-
|
Debt financing
costs
|
|
-
|
|
(4,747)
|
Original issuance
discount
|
|
-
|
|
(1,808)
|
Dividend payment to
Tower shareholders
|
|
(10,088)
|
|
(9,221)
|
Proceeds from stock
options exercised
|
|
251
|
|
1,313
|
Purchase of treasury
stock
|
|
(474)
|
|
(763)
|
Net cash used in
continuing financing activities
|
|
$
(60,516)
|
|
$
(28,411)
|
|
|
|
|
|
Discontinued
operations:
|
|
|
|
|
Net cash from
discontinued operating activities
|
|
$
74,455
|
|
$
26,645
|
Net cash used in
discontinued investing activities
|
|
(47,587)
|
|
(39,504)
|
Net cash from / (used
in) discontinued financing activities
|
|
(26,456)
|
|
8,649
|
Net cash from / (used
in) discontinued operations
|
|
$
412
|
|
$
(4,210)
|
|
|
|
|
|
Effect of exchange
rate changes on continuing cash and cash equivalents
|
$
(2,446)
|
|
$
4,256
|
|
|
|
|
|
NET CHANGE IN CASH
AND CASH EQUIVALENTS
|
|
$
(28,247)
|
|
$
47,330
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS:
|
|
|
|
|
Beginning of
period
|
|
$
96,313
|
|
$
48,983
|
|
|
|
|
|
End of
period
|
|
$
68,066
|
|
$
96,313
|
TOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
NON-GAAP FINANCIAL
MEASURE RECONCILIATIONS
|
(Amounts in
thousands - unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Reconciliation
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net income / (loss)
attributable to Tower International, Inc.
|
$
(13,356)
|
|
$
(3,867)
|
|
$
48,900
|
|
$
47,625
|
Restructuring and
asset impairment charges, net
|
|
2,213
|
|
1,540
|
|
3,380
|
|
9,098
|
Depreciation and
amortization
|
|
12,941
|
|
14,872
|
|
54,815
|
|
50,471
|
Acquisition costs and
other
|
|
(36)
|
|
90
|
|
182
|
|
232
|
Long-term
compensation expense
|
|
2,000
|
|
1,378
|
|
7,695
|
|
5,601
|
Lease
expense
|
|
3,758
|
|
-
|
|
11,090
|
|
-
|
Interest expense,
net
|
|
4,142
|
|
4,963
|
|
18,798
|
|
9,744
|
Other
expense
|
|
-
|
|
-
|
|
977
|
|
575
|
Net periodic benefit
expense / (income)
|
|
4,078
|
|
(574)
|
|
2,403
|
|
(2,245)
|
Provision / (benefit)
for income taxes
|
|
(10,068)
|
|
30,728
|
|
1,259
|
|
44,089
|
(Income) / loss from
discontinued operations, net of tax
|
34,752
|
|
(4,275)
|
|
28,219
|
|
(8,032)
|
Net income
attributable to noncontrolling interests
|
|
-
|
|
-
|
|
-
|
|
110
|
Adjusted
EBITDA
|
|
$
40,424
|
|
$
44,855
|
|
$
177,718
|
|
$
157,268
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
Reconciliation
|
|
Year Ended
December 31,
|
|
|
|
|
2018
|
|
2017
|
|
|
|
|
Net cash from
continuing operating activities
|
|
$
98,247
|
|
$
126,991
|
|
|
|
|
Cash disbursed for
purchases of PP&E
|
|
(83,141)
|
|
(67,240)
|
|
|
|
|
Free cash flow
|
|
$
15,106
|
|
$
59,751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt
Reconciliation
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
2018
|
|
2017
|
|
|
|
|
Short-term
debt
|
|
$
4,148
|
|
$
4,744
|
|
|
|
|
Long-term debt, net
of current maturities
|
|
300,417
|
|
354,102
|
|
|
|
|
Debt issue
costs
|
|
(5,960)
|
|
(8,091)
|
|
|
|
|
Total debt
|
|
298,605
|
|
350,755
|
|
|
|
|
Less: Cash and cash
equivalents
|
|
(68,066)
|
|
(96,313)
|
|
|
|
|
Net debt
|
|
$
230,539
|
|
$
254,442
|
|
|
|
|
TOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CERTAIN ITEMS
INCLUDED IN NET INCOME
|
(Amounts in
thousands, except per share amounts - unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
After
tax
|
|
Before
tax
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
Income / (expense)
items included in net income, net of tax:
|
|
|
|
|
|
|
|
|
Restructuring and
asset impairment charges, net
|
|
|
|
|
|
|
|
|
One-time
restructuring actions
|
|
$
(1,516)
|
|
$
(587)
|
|
$
(1,995)
|
|
$
(841)
|
Interest
expense
|
|
|
|
|
|
|
|
|
Mark-to-market loss
on derivative financial instruments
|
|
-
|
|
(393)
|
|
-
|
|
(634)
|
Net periodic
benefit income / (expense)
|
|
|
|
|
|
|
|
|
Pension actuarial
loss
|
|
(3,978)
|
|
-
|
|
(5,234)
|
|
-
|
Provision for
income taxes
|
|
|
|
|
|
|
|
|
Reversal of valuation
allowance in Brazil
|
|
14,417
|
|
-
|
|
14,417
|
|
-
|
Reversal of U.S. tax
credits
|
|
(3,029)
|
|
-
|
|
(3,029)
|
|
-
|
U.S. tax
reform
|
|
-
|
|
(27,163)
|
|
-
|
|
(27,163)
|
Discontinued
operations
|
|
|
|
|
|
|
|
|
Income from
discontinued operations
|
|
9,248
|
|
4,275
|
|
9,248
|
|
4,275
|
Europe fair value
adjustment
|
|
(44,000)
|
|
-
|
|
(44,000)
|
|
-
|
Total items included
in net income, net of tax
|
|
$
(28,858)
|
|
$
(23,868)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to Tower International, Inc.
|
|
$
(13,356)
|
|
$
(3,867)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo: Average
shares outstanding (in thousands)
|
|
|
|
|
|
|
|
|
Basic
|
|
20,607
|
|
20,537
|
|
|
|
|
Diluted
|
|
20,607
|
|
20,537
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common share
(GAAP)
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.65)
|
|
$
(0.19)
|
|
|
|
|
Diluted
|
|
(0.65)
|
|
(0.19)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted adjusted
earnings per share (non-GAAP)*
|
|
$
0.74
|
|
$
0.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* For the three
months ended December 31, 2018 and 2017 diluted share counts of 21
million and 20.9 million, respectively, were used to calculate
diluted adjusted earnings per share.
|
TOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CERTAIN ITEMS
INCLUDED IN NET INCOME
|
(Amounts in
thousands, except per share amounts - unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
After
tax
|
|
Before
tax
|
|
|
Year
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
Income / (expense)
items included in net income, net of tax:
|
|
|
|
|
|
|
|
|
Restructuring and
asset impairment charges, net
|
|
|
|
|
|
|
|
|
One-time
restructuring actions
|
|
$
(2,244)
|
|
$
(4,721)
|
|
$
(2,894)
|
|
$
(7,433)
|
Interest
expense
|
|
|
|
|
|
|
|
|
Acceleration of the
amortization of debt issue costs and OID
|
(735)
|
|
-
|
|
(967)
|
|
-
|
Mark-to-market gain
on derivative financial instruments
|
|
-
|
|
3,278
|
|
-
|
|
5,287
|
Net periodic
benefit income / (expense)
|
|
|
|
|
|
|
|
|
Pension actuarial
loss
|
|
(3,978)
|
|
-
|
|
(5,234)
|
|
-
|
Other
expense
|
|
|
|
|
|
|
|
|
Premium and other
fees for re-pricing of Term Loan
|
|
(743)
|
|
-
|
|
(977)
|
|
-
|
Debt refinancing
costs
|
|
-
|
|
(357)
|
|
-
|
|
(575)
|
Provision for
income taxes
|
|
|
|
|
|
|
|
|
Reversal of valuation
allowance in Brazil
|
|
14,417
|
|
-
|
|
14,417
|
|
-
|
Reversal of U.S. tax
credits
|
|
(3,029)
|
|
-
|
|
(3,029)
|
|
-
|
U.S. tax
reform
|
|
-
|
|
(27,163)
|
|
-
|
|
(27,163)
|
Discontinued
operations
|
|
|
|
|
|
|
|
|
Income from
discontinued operations
|
|
15,781
|
|
10,628
|
|
15,781
|
|
10,628
|
Europe fair value
adjustment
|
|
(44,000)
|
|
-
|
|
(44,000)
|
|
-
|
Loss on sale of Wuhu
joint venture
|
|
-
|
|
(2,596)
|
|
-
|
|
(2,596)
|
Noncontrolling
interests
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests*
|
|
-
|
|
(110)
|
|
-
|
|
(110)
|
Total items included
in net income, net of tax
|
|
$
(24,531)
|
|
$
(21,041)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Tower International, Inc.
|
|
$
48,900
|
|
$
47,625
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo: Average
shares outstanding (in thousands)
|
|
|
|
|
|
|
|
|
Basic
|
|
20,592
|
|
20,499
|
|
|
|
|
Diluted
|
|
20,996
|
|
20,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per common
share (GAAP)
|
|
|
|
|
|
|
|
|
Basic
|
|
$
2.37
|
|
$
2.32
|
|
|
|
|
Diluted
|
|
2.33
|
|
2.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted adjusted
earnings per share (non-GAAP)
|
|
$
3.50
|
|
$
3.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
attributable to noncontrolling interests of discontinued
operations
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/tower-international-reports-2018-financial-results-in-line-with-outlook-and-provides-outlook-through-2020-300793541.html
SOURCE Tower International, Inc.